ABCON: Cash deposit charges stoppage good for economy

The Association of Bureaux De Change Operators of Nigeria (ABCON), has said the removal of three percent charge on cash deposits above N500, 000 for individuals and N3 million for corporate customers will boost depositors’ confidence in the banking sector.

ABCON President, Aminu Gwadabe said the CBN governor, Godwin Emefiele did the right thing by abolishing the charges during the unveiling of his agenda at the world press conference held last week.

“The cancelation of the charges is good for the economy, will boost customers’ confidence and also enhance the achievement of the objectives of the cashless policy,” Gwadabe said.

Under the cashless policy, the CBN imposed three percent charge on cash deposits above N500, 000 for individuals and cash deposit above N3 million for corporate customers. However, Governor Emefiele on Thursday ordered the stoppage of the charges.

“We have become aware of complaints by customers particularly regarding the charges being imposed for cash deposits. This has resulted in customers devising various means to avoid the charges through opening of multiplicity of accounts and other disingenuous behaviour, all aimed at undermining the objective of this policy. Given these outcomes and to better reflect our goal of having more cash under our control, all charges on deposits are hereby stopped with immediate effect”, Emefiele said.

The ABCON President said that the cancellation of the charges would also reduce the amount of bank charges paid by BDCs and thus reduce their operating expenses. This, he said, will in turn increase profitability and taxes paid to the government. Gwadabe said the reduced operating expenses, would encourage BDCs to offer attractive exchange rates to their customers.

The group also praised Emefiele’s decision to sustain stability of the exchange rate by defending the naira. This according to Gwadabe, would engender increased confidence in the country especially foreign investors, and lead to increased inflow of foreign exchange supply into the country and boost external reserves.

He said: “ABCON is committed to exchange rate stability and have always supported CBN’s policy in this regard. This is reflected in the Association’s zero tolerance on non-compliance with regulatory requirement. We would continue to support the apex bank under Governor Emefiele towards achievement of the goal of exchange rate stability in the economy,” he said.